Why XRP Is Going Down Today: Main Reasons Behind the Price Crash

The popular altcoin XRP is falling again. The XRP price today stands at $2.20, down 2.40% in the last 24 hours. Its market cap is about $129.41 billion, and the 24-hour trading volume is around $1.98 billion, as per CoinMarketCap. Over the past week, the price dropped by nearly 4%, moving from $2.30 to $2.20. It has also been stuck in a sideways trend for several days.

Source: CoinMarketCap

Why XRP Is Going Down Today: 3 Main Reasons Behind the Drop

Blockchain Use Is Slowing Down: One of the main factors XRP has experienced a decline in its recent price is the dramatic reduction in blockchain use. In March, the Ledger had over 608,000 active accounts, but that number has now fallen to just 31,000. This massive plunge in user activity results in fewer transactions happening, reducing the value of the network and its rate of activity. This, in turn, would lead to investors considering this drop a threat and decreasing confidence and selling their holdings.

Circle Ripple News : One of the reasons behind the crash of XRP is that Ripple purchased Circle. Rumors were rampant that Ripple was going to buy Circle, the owner of USDC stablecoin. Investors were eager.

But in a recent event, Ripple CEO Brad Garlinghouse clarified that they never planned on acquiring Circle. Their CTO David Schwartz also clarified that his $6 billion offer statement was made in jest and took down the post. This news agitated the market and sent it down.

Source: X

Whale Transfers and Token Unlocks: In the last 7 hours, Whale Alert reported more than 1 billion XRP leaving escrow. Ripple unlocked 500 million altcoins, and additional 100 million and 400 million XRP were transferred to addresses that are not publicly available. The combined worth of all these transfers is more than $2.2 billion.

Source: X

These monolithic token transfers always leave the market uncomfortable with fear, as the investors fear that they could induce sell-offs. In the past, similar monolithic unlocks have created panic and increased volatility and exerted downward pressure on the price.

XRP Price Prediction : Right Time to Invest?

On the USDT chart, we have the price moving sideways at $2.20. Technical analysis likewise reveals risk and opportunity for us.

Source: TradingView

Bearish Case: If it cannot remain higher at $2.00, the price can decline to $1.80 or even lower to $1.60. RSI is at 44.21, which is below 50 and indicates weak buying. MACD is also decreasing, which is represented by red bars and the signal line that is above the MACD line. This shows ongoing sell pressure.

Bullish Case: If it manages to break above the $2.40 resistance with high volume, it could rise to $2.75 or even $3.00. For this to happen, the RSI must go above 50, and the MACD must flip green. Some positive news or whale buying could also trigger a short-term rally.

Conclusion

Right now, it is crashing because of slowing blockchain use, denied Circle Ripple news, and heavy whale moves. It’s not just one reason—these three factors are all pulling the price down together. So, is this the right time to buy? That depends on your strategy. The chart shows a mixed signal. Wait for confirmation if you're cautious. Jump in if you're feeling bold and believe in the long-term potential.

Disclaimer: This article is for informational purposes only and not financial advice. Always do your own research before investing in any cryptocurrency.